An interpretation of the behavior of the mark up in the Brazilian industry
Our objective in this paper is to investigate the determinants of mark up in the Brazilian industrial firms in the 1990s, a period marked by slow economic dynamism and relevant changes in the macroeconomic environment. Based on the Post Keynesian theory of price determination, we discuss that price changes depend on decision about the mark up. The econometric exercise developed in this article shows how microeconomic and macroeconomic variables affected the determination of the mark up. A negative relation was found between demand variation and mark up variation, suggesting that it evolved in an anti-cyclical way.
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| Main Authors: | , |
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| Format: | Digital revista |
| Language: | English |
| Published: |
Universidad Nacional Autónoma de México, Facultad de Economía
2010
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| Online Access: | http://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S0185-16672010000200003 |
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| Summary: | Our objective in this paper is to investigate the determinants of mark up in the Brazilian industrial firms in the 1990s, a period marked by slow economic dynamism and relevant changes in the macroeconomic environment. Based on the Post Keynesian theory of price determination, we discuss that price changes depend on decision about the mark up. The econometric exercise developed in this article shows how microeconomic and macroeconomic variables affected the determination of the mark up. A negative relation was found between demand variation and mark up variation, suggesting that it evolved in an anti-cyclical way. |
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